Tarena's Recent Listing Cues Up More Chinese IPOs In New York

As excitement builds over the IPO of Alibaba in New York, IT education service Tarena International became the first listing of the year from China as a handful of Chinese companies look to go public this quarter in the U.S.

Silicon Dragon interviewed Shaoyun Han, Founder, Chairman and Chief Executive Officer, on Tarena’s initial day of trading on NASDAQ. He said the IPO is a milestone event and a profile raiser for the company. He expects revenues to increase 50 percent this year and 30 percent in 2015 for Tarena, which counts $92.8 million in revenues. The fast growth is not so atypical of IT-related companies going after opportunities in a still-heated techeconomy.

Proceeds from the $138 million raised at the IPO — which saw the stock price rise by 20% to $10.80 on the opening day – will be used to improve training centers in 33 cities across China and to make acquisitions as the market leader in the IT training space expands. The Chinese startup has financial backing from IDG Ventures and JAFCO Ventures and a private placement totaling $30 million, said the founder, who formed Tarena in 2001.

Chinese companies are recovering from the doldrums of 2012 when only two listed in the U.S. – VIPShop and social gaming and networking startup YY. Last year, eight China-based tech companies went public in the U.S. See Forbes post, rebound.

With a flurry of big-ticket acquisitions by the giant Internet companies in China — Tencent, Alibaba and Baidu — founders of small Chinese businesses have trade deals as an alternative exit route to cash out from their hard entrepreneurial work. It will be interesting to watch how the IPO story unfolds this year after the roller coaster of the past two years.

Advertisement

ForbesForbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

Latest stories

NASDAQ is Back at 2000 Dot-Com Bubble Level
The Dot-Com force is back at the NASDAQ. It took Silicon Valley 15 years to bring back the NASDAQ to the Dot-Com Bubble Levels. With startup valuations in the billions becoming the norm, Wall Street is following up with driving up the value of public traded tech companies.

$75,000 Apple Watch revealed
When Apple's designs are not exclusive enough then there are 3rd parties who add gold and diamonds to the iGadget to make them precious. Brikk announced the Lux Watch, a diamond studded version of the Apple Watch.